how to choose personal home loans?

Now that financial institutions have the credit tap practically closed, it is more important than ever to know how to choose the best personal loan, the one that best suits our needs and possibilities to be able to claim the right entity and not receive a negative response.

It is normal to hire financing to choose a quota that does not compromise financial stability, however, choosing one that is too low can mean paying too much. And, the lower the monthly fee, the longer the repayment time will be, and the more interest will be generated. The ideal to pay the minimum interest is to shorten the term as much as possible at the cost of assuming a higher monthly payment.

We must not leave aside the cost of late interest as expenses for the return of a receipt in case of default. In this case, it can greatly increase the cost of a loan. In the case that we want to negotiate a reduction in the cost of the loan with our financial institution, there are two main fronts: payment guarantees and the link to the bank.

Payment guarantees. The higher the solvency of the client, the easier it is for the bank to access a reduction in the interest rate or loan commissions. We can increase the guarantees of payment through property or other assets or through the figure of a guarantor. Another way to protect the entity from possible defaults or unforeseen events without unbalancing the client's economy in case of default is insurance or payment plans protected.

Linkage of the entity. In addition to the above, the more financial products we have contracted with the entity, the lower the cost of the loan. The insurance mentioned above is a good example. Normally, payroll and a certain number of receipts are required to access credit conditions. They can also demand the hiring of other products such as home insurance or cards or even investment-oriented products such as an investment fund marketed by the entity or a pension plan.

In any case, each personal home loan situation is unique and other types of monthly expenses should be considered as well as the economic situation of each person and the level of income. In this way, a person who has a higher salary can afford to pay a higher fee of their income because the remaining capital will be higher, allowing them to live without problems. On the other hand, a person who receives a lower salary must reduce their monthly payment to a level that allows them to repay their debts without compromising their financial stability.